GenesisCare drops Clarity Pharma stake, Wilsons on trade Anthony...

GenesisCare drops Clarity Pharma stake, Wilsons on trade
Anthony Macdonald, Sarah Thompson and Kanika Sood
Feb 9, 2023 – 2.58pm


Debt-laden GenesisCare has sold its 6 per cent stake in biotech small cap Clarity Pharmaceuticals via Wilsons’ equities desk.

The block trade saw 15.36 million shares change hands at 72¢ each on Thursday, which was a 13 per cent discount to the stock’s last close at 83¢.

GenesisCare is expected to use the proceeds to help short up its finances.

It’s a small step for GenesisCare, which is investigating recapitalisation options in light of a $2 billion-plus debt profile and weak earnings. Ratings house S&P Global downgraded GenesisCare to “CCC-” on Wednesday, citing heightened risk of a default.

“Without a significant rebound in earnings or new equity, we view a distressed exchange or debt restructuring as being increasingly likely within the next six months,” S&P told clients this week.

While GenesisCare tries to find a path back to financial stability, it’s been seeking to sell its venture capital investments and real estate to ease the burden.

It owned a 6 per cent stake in Clarity via GenesisCare Ventures Pty Ltd.

Clarity is a clinical stage cancer biotech developing radiopharmaceutical products to image and diagnose cancers. It listed in August 2021 at $1.40 a share.